THE BIRD URMSTON MANAGEMENT LTD

Executive Summary

THE BIRD URMSTON MANAGEMENT LTD is in the early stages of operation with typical start-up challenges, showing negative working capital and net assets which indicate liquidity pressure and capital deficiency. Immediate focus on cash flow management, cost control, and possible capital injection is critical to stabilize financial health and avoid escalation of financial distress.

THE BIRD URMSTON MANAGEMENT LTD - Analysis Report

Company Number: 14662883

Analysis Date: 2025-07-20 14:20 UTC

Financial Health Assessment of THE BIRD URMSTON MANAGEMENT LTD

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1. Financial Health Score: D

Explanation:
The company shows early symptoms of financial distress with net current liabilities and negative net assets. Being a newly incorporated micro-entity (less than 2 years old), some early losses or start-up expenses are common, but the current financial position indicates a fragile financial state requiring careful management.

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2. Key Vital Signs

Metric	Value	Interpretation
Current Assets	£17,413	Limited short-term resources available
Current Liabilities	£20,382	Obligations due within one year
Net Current Assets (Working Capital)	-£2,969	Negative working capital, indicating possible liquidity issues
Net Assets (Equity)	-£3,469	Negative shareholder funds — company owes more than it owns
Average Number of Employees	14	Moderate headcount for a micro-entity, may impact fixed costs

Interpretation:
The negative net current assets ("working capital deficit") are like a low oxygen level in a patient's bloodstream — it suggests the company may struggle to meet short-term obligations from available liquid resources. Negative net assets indicate the company is "in the red," with liabilities exceeding assets, a warning sign akin to "organ dysfunction" in financial health.

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3. Diagnosis

• Liquidity Strain: The company has a working capital deficit, meaning current liabilities exceed current assets by nearly £3,000. This can create cash flow tension, especially if customers delay payments or if costs rise unexpectedly.
• Capital Deficiency: Shareholders’ funds are negative, signaling accumulated losses or start-up costs not yet offset by profits. This is typical for newly formed companies but requires monitoring.
• Start-Up Phase: Incorporated in February 2023 and filing first accounts in February 2024, the company is still in early stages. The sector—public houses and bars—is capital and operationally intensive, often facing initial cash burn.
• Operational Load: Employing 14 staff members at this early stage suggests fixed costs are significant, potentially adding to cash flow pressure.
• No Audit Requirement: Filing under micro-entity rules means some financial detail is limited, reducing transparency on profit and loss or cash flow specifics.

Summary Diagnosis:
THE BIRD URMSTON MANAGEMENT LTD is in a vulnerable financial state, characteristic of a start-up with early "symptoms" of distress (negative working capital and net assets). Without improved liquidity or capital injection, the company risks inability to meet short-term debts, which can escalate to solvency issues.

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4. Recommendations

• Improve Cash Flow Management:

  • Tighten credit control to accelerate debtor collections.
  • Negotiate extended payment terms with suppliers to ease short-term cash demands.
  • Monitor daily cash balances rigorously to avoid liquidity crunches.

• Capital Injection or Funding:

  • Consider shareholder loans or additional equity investment to strengthen the balance sheet and provide breathing room.
  • Explore government grants or small business loans targeted at hospitality startups.

• Cost Control Measures:

  • Review staffing levels and overheads to ensure operational efficiency without compromising service quality.
  • Implement budgeting and forecasting to anticipate cash flow needs and avoid surprises.

• Business Development:

  • Accelerate customer acquisition and revenue growth through marketing and promotions specific to the public house/bar sector.
  • Diversify income streams (e.g., events, food service) to stabilize revenue.

• Financial Monitoring:

  • Establish regular internal financial reviews beyond the annual accounts to detect early warning signs.
  • Engage an accountant or financial advisor to assist with ongoing financial planning.

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